Recordati (REC) Investor Update summary

Strategic vision and growth targets

• Ambition to double revenue by 2030, supported by organic growth, targeted business development, and disciplined M&A, with no need for major mergers to achieve this goal.

• 2027 targets reaffirmed: revenue of €3–3.2 billion, EBITDA margin of at least 38%, and adjusted net income expected to reach €770–820M, with a CAGR of 11.8% (2024–2027).

• Growth strategy leverages a diversified business model across specialty primary care (SPC) and rare diseases (RRD), with geographic and portfolio diversification mitigating risks.

• U.S. market represents 17% of sales, with most growth and sales coming from outside the U.S., providing a natural hedge against U.S.-specific risks.

• Business development and M&A remain integral, with a strong track record of value-creating deals and ongoing appetite for further acquisitions.

Group overview and business model

• Operates a resilient, diversified pharmaceutical business with global reach in over 150 countries and 4,450+ employees.

• No single product exceeds 10% of revenue, ensuring portfolio risk diversification.

• Revenue in FY 2024 reached €2,341.6M, up 9.2% YoY, with strong EBITDA and net income margins.

• Business model emphasizes disciplined M&A, robust financial focus, and experienced management.

Specialty & Primary Care (SPC) segment

• SPC accounts for 64% of revenue, delivers mid-single digit organic growth (CAGR ~3.5–4.5% at CER), and is driven by strong brands in urology, cardiovascular, and gastroenterology.

• Urology is the largest SPC franchise, with products like Eligard, Urorec, and Avodart showing strong performance despite increased competition.

• Cardiovascular sales remain stable, supported by targeted promotion and resilient brands post-LOE.

• OTC brands drive growth in gastrointestinal, cough & cold, and other pharma segments.